The inflation-adjusted level of house prices in Britain is likely to remain below its pre-recession levels for the next five years, one of the country's leading consultancies said today.

A report from PricewaterhouseCoopers (PwC) showed there was a 70% chance that the real cost of a property in 2015 would be below that in 2007 and a 50% chance that it would take until 2020 for the market to rise above its previous peak.

The study coincided with the monthly health check of the property market from the Royal Institution of Chartered Surveyors (Rics) showing a slackening in activity. Reports from estate agents indicated only the second monthly drop in inquiries from new buyers since the autumn of 2008.

Cheaper borrowing costs and shortages of properties to buy led to a rapid recovery in prices last year, but the Rics said uncertainty over the outlook for the economy had made potential purchasers more wary. Agents reporting a fall in inquiries outstripped those reporting an increase by five percentage points last month, while the balance of Rics members recording an increase in homes for sale was at its highest for more than three years.

Today's Rics report chimes with recent house price surveys fromthe Nationwide and the Halifax, which suggested that low levels of activity have brought a halt to rising prices.

Jeremy Leaf, Rics spokesman, said: "A shortage of stock has been one factor holding back transaction activity in the housing market but the abolition of Hips is helping to belatedly address this issue. This is likely to be reflected in higher sales numbers over the coming months. However, with supply of property now beginning to outstrip demand, there is a risk of some modest slippage in prices during the second half of the year."

PwC said possible trends in income growth, interest rates and housing supply meant homebuyers could not rely on the price of their homes rising in value over the next few years.

John Hawksworth, head of macroeconomics at PwC, said: "Although the average house price overvaluation of around 25% in mid-2007 is down to around 5%-10% despite the rally since March 2009, our analysis suggests that house prices remain vulnerable to setbacks. "The possibility of a renewed fall in house prices over the next few years, particularly in real terms, cannot be ruled out as mortgage interest rates start to rise again," Hawksworth added.

"While it can be argued in theory that house price changes have little effect on overall UK wealth," he said, "our econometric analysis suggests that an unanticipated future fall in house prices could have a significant impact in dampening the speed of the recovery in consumer spending in the medium term."